Sri Lanka Officially Designates Indian Rupee as a Recognized Currency

Sri Lanka Officially Designates Indian Rupee as a Recognized Currency

Ira Singh
22 July’23

In a landmark move, Sri Lanka has formally recognized the Indian rupee as a designated currency for transactions within the country. The decision comes as a part of a bilateral agreement signed between India and Sri Lanka, aimed at strengthening economic ties.

Sri Lanka has notified the Indian rupee as a designated currency, Indian External Affairs Ministry Spokesperson Arindam Bagchi said on Thursday (July 20), as per media reports.

“In terms of trading in our national currencies, Sri Lanka has already notified India Rupee as designated foreign currency in their system,” Bachi said during a weekly media interaction in New Delhi.

Following months of negotiations, representatives from both countries reached a consensus on the currency recognition, emphasizing the mutual benefits it will bring to the two economies. This move holds significant implications for cross- border trade, investment, and tourism between India and Sri Lanka.

Making Indian rupee (INR) a designated foreign currency enables not only trade settlement between the two countries in INR but also Indian tourists coming to Sri Lanka can use INR for transactions.